Name: Teradyne Inc. (NASDAQ:TER) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Teradyne Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Foreign currency translation adjustment, net of tax	17,407)	(29,031)	(36,207)	48,903)	(10,991)
Unrealized gains (losses) on marketable securities arising during period, net of tax	2,423)	(12,666)	(2,255)	5,839)	6,015)
Reclassification adjustment for (gains) losses included in net income, net of tax	44)	301)	(995)	(2,365)	(690)
Available-for-sale marketable securities	2,467)	(12,365)	(3,250)	3,474)	5,325)
Unrealized gains (losses) arising during period, net of tax	5,464)	(2,517)	—)	—)	—)
Reclassification adjustment for (gains) losses included in net income, net of tax	(2,441)	—)	—)	—)	—)
Cash flow hedges	3,023)	(2,517)	—)	—)	—)
Amortization of prior service credit, net of tax	(7)	(7)	(7)	(7)	(148)
Defined benefit post-retirement plan	(7)	(7)	(7)	(7)	(148)
Other comprehensive income (loss), net of tax	22,890)	(43,920)	(39,464)	52,370)	(5,814)
Comprehensive income	471,642)	671,581)	975,125)	836,517)	461,654)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The financial performance from 2019 to 2023 is characterized by a cycle of significant growth followed by a period of contraction. Net income and comprehensive income demonstrated a strong upward trajectory that peaked in 2021, before entering a downward trend over the subsequent two fiscal years.

Net Income Performance: Net income experienced substantial growth from US$ 467.5 million in 2019 to a peak of US$ 1.01 billion in 2021. This peak was followed by a sharp decline in 2022 to US$ 715.5 million and a further reduction in 2023 to US$ 448.8 million, which represents a level slightly below the 2019 starting point.
Volatility in Other Comprehensive Income (OCI): Other comprehensive income exhibited high volatility throughout the five-year period, primarily driven by foreign currency translation adjustments. A significant gain of US$ 52.4 million in 2020 was offset by losses of US$ 39.5 million in 2021 and US$ 43.9 million in 2022, before recovering to a gain of US$ 22.9 million in 2023.
Foreign Currency and Marketable Securities: Foreign currency translation adjustments were the primary source of fluctuation within OCI, alternating between net gains and losses. Marketable securities also contributed to this volatility; unrealized losses peaked in 2022 at US$ 12.7 million before rebounding to a gain of US$ 2.4 million in 2023. The introduction of specific cash flow hedge reporting in 2022 and 2023 showed a shift from a US$ 2.5 million loss to a US$ 3.0 million gain.
Comprehensive Income Analysis: Comprehensive income closely mirrored the trajectory of net income, reaching its maximum value of US$ 975.1 million in 2021. The divergence between net income and comprehensive income was most evident in 2020, where OCI increased the total, and in 2022, where OCI acted as a drag, reducing the final comprehensive income figure by approximately US$ 43.9 million relative to net income.

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